German Commercial Bank: Even if a US-Iran agreement is reached, the room for oil price decline will be limited

Odaily Planet Daily News As traders await the latest developments in US-Iran peace talks, oil prices remain range-bound overall. Previous exchanges of fire between the two sides have heightened market concerns about an already fragile ceasefire. Analysts at German Commercial Bank said: “Even if an agreement is reached, the room for oil price decline may be limited, as the regional situation remains fundamentally unstable, and production and exports in the region can only recover gradually.” “In any case, the Strait of Hormuz is likely to remain a key bottleneck in the short term, which is sufficient to support the existence of a risk premium.” Both benchmark crude oils are expected to record a decline of over 7% this week. (Jinshi)